ProShares, a provider of alternative exchange-traded funds, has launched what is thought to be one of the first ETFs to mimic a hedge fund strategy.

The company said that while hedge funds can offer attractive returns against equities, investors are often deterred because they are associated with illiquidity, limited transparency and high fees. By replicating performance through its the ProShares Hedge Replication ETF, ProShares believes it has found an attractive alternative.